The Asian Development Bank (ADB) has approved a $160 million loan to Bangladesh to help upgrade Dhaka’s power distribution network, enhancing its efficiency and increasing energy supply.

Experiencing rapid urbanisation, Dhaka is projected to have growing energy demand of 10% annually until 2042. 

A new and bigger Dhaka airport terminal and several mass rapid rail lines are being built, which will require more and efficient power supply. The government of Bangladesh has targeted to double energy generation capacity by 2030, read a press release of the ADB from Manila on Thursday.

“ADB supports the government in providing reliable electricity supply to its rapidly expanding capital city while achieving its climate goals. Improved energy efficiency of its existing power supply is part of Bangladesh’s nationally determined contributions under the Paris Agreement,” said ADB Principal Energy Specialist Roka Sanda. 

“By modernizing aged and overloaded power infrastructure with climate-resilient features, the project will optimize power usage, reduce wastage, and mitigate greenhouse gas emissions.”

Increasing energy efficiency through this project is expected to reduce at least 14,700 tonnes of carbon dioxide emissions every year, read the release. 

The project will construct eight substations and install more than 100km of climate- and disaster-resilient underground cables and 150km of overhead lines. The new infrastructure will provide reliable energy to 1.3 million new and existing users and the new airport terminal, as well as protect the power network from weather-related hazards such as floods.

Through an attached technical assistance, the knowledge and capacity of the Dhaka Electric Supply Company Limited and related government agencies to handle public-private partnerships (PPPs) will be enhanced through a capacity development programme and policy recommendations to strengthen PPP processing and implementation and the handling of future commercial financing. 

The $750,000 technical assistance grant will be funded by the Republic of Korea e-Asia Knowledge Partnership Fund, administered by the ADB.